• 4 MIN READ
Payment Systems for IT Businesses in the UK
May 22, 2022
With the increasing importance of technology in today’s society, many entrepreneurs are choosing to create start-up companies in the business sector. Perhaps this is something you have considered yourself without being sure of how to begin.
This article will consider one of the preliminary basics of opening an IT business: sorting out your finances. Many people opt for a traditional business bank account, but there are other options. Here, we consider the potential of Payment Systems or Payment Service Providers (PSPs) for IT businesses.
Running an IT Business
To run an IT business, one of the first things you are advised to do is open up a business account. However, while banks can offer payment processing services, they may not bring much else to the table. What’s more, it can take weeks to have a bank application processed and confirmed.
All in all, while business bank accounts get the job done, they can end up causing you a lot of hassle and at the end of the day, you won’t even get the full range of services you’d get with a payment solution.
Why Use a Payment Systems Over a Traditional Banks?
So, what does a payment system offer that a traditional bank account doesn’t? In short, lots!
Payment services offer a wide range of features and utilities that merchant accounts don’t. Not only do they enable businesses to process payments, but they also provide users with a great deal of additional support. You’ll benefit from features like reporting and invoicing tools, for example.
Payment systems are also far quicker and easier to set up than merchant accounts. When a new merchant is added, the PSP simply makes a new sub-account for the merchant under a parent account. This means that you’re able to get your business started a lot faster than you would with a merchant account.
The Benefits of Payment Systems for IT Companies
All that being said, you may wonder about the exact benefits of payment systems for IT companies. This section will explain some of the main benefits of PCP for IT businesses so that you can decide for yourself whether or not a payment system is a right choice for you.
Get Your IBAN
When you get a payment service, the providers will issue you with your IBAN. This is useful as it will allow your business to make international transfers.
Different solutions providers issue IBANs in different ways, but you will always be given one. This ensures that your business operates within the accepted international standards.
Another benefit of payment service providers is that they boast impressive transfer fees. You’ve probably used services like PayPal or Stripe before. Think of how quick and easy the process was and how quickly the transaction was completed. Now compare this to bank transfers, where you may be waiting several days for a payment to go through.
Account Opened Remotely
When opening a business account, you open the account remotely. This means no standing around in queues or waiting to speak with bank staff. Instead, you can set up your account from the comfort of your own home and get started straight away. Being able to open your PSP account remotely means that you have one less thing to worry about.
Most payment service providers charge a flat rate for transaction fees. This means that no matter the size of the transaction, you’ll always be paying the same amount. With a business payment account, you instead have to pay a percentage of the transaction as a fee. While this isn’t so bad with low transactions, you might notice the impact a bit more with larger ones.
Multi-currency payment processing enables you to accept credit and debit card payments from clients in foreign currencies. Expansion into international markets is not without its challenges. However, if done right, you’ll find your company will increase its sales and will generally become a more competitive business. For this reason, having a multi-currency payment platform is particularly useful.
When you sign up with a PSP, you’ll be given corporate cards, as you would with a merchant account. This lets your employees manage their work expenses and travel costs, for example. You can also view card statements and set limits on how much your employees can withdraw using their business cards.
Connecting POS Terminals
Payment systems integrate with financial tools you may already be using, such as POS terminals. So, you can rest assured that PSP systems offer a seamless transaction process both for you and your customers.
Payment service providers understand well the importance of security and privacy when it comes to online banking and money management. With a digital payment solution, you are guaranteed that all of your private information remains private.
Working with Cryptocurrencies
With the growth of digital currencies, some services are slowly beginning to incorporate cryptocurrencies into their systems. Customers value cryptocurrency payment options because of the increased security and the anonymity crypto provides. But cryptocurrency transactions also benefit business owners.
Crypto transaction fees tend to be low. What’s more, digital currency transactions can’t be reversed or faked like transactions made with fiat money.
Why is PayRow a Useful Solution for IT Businesses?
If this article has helped you to see the benefits of using digital payment solutions for IT businesses, then you may be wondering where to go from here. This is where PayRow comes in.
PayRow is a London-based PSP with a mission to grow the entrepreneurial population. We offer a wide range of services to our customers, including accounts, money transfers, corporate cards, and more. Our team of experienced and professional experts can make sure that you get whatever help you need to make managing your business as easy as possible.
Read more Payment Services for Freelancers and SMEs.
Start Your IT Business with PayRow Today!
With PayRow, you can enjoy all the benefits of using payment services for your IT business. So, if you’re interested in finding out more about those benefits, or starting a business with Payrow, register today.